UPS announces Q2 growth, new route
The second quarter of 2011 was extremely promising for UPS, with the logistics provider reporting a total revenue of $13.2 billion. In addition to an 8.1 percent year-over-year hike in revenue, the Atlanta-based company also posted a 31-percent increase in domestic operating profit.
UPS has also expanded its airfreight network. Targeting the Europe-to-Asia trade lane, the logistics provider recently launched a route from Cologne, Germany to Chengdu. The flight will make a stop in Warsaw before continuing on to Shanghai.
Latin America was another key area of growth for UPS during the second quarter of 2011. With 19 weekly flights to this region, the company more than doubled its payload capacity to Central and South America in June.
“This enhancement in the Americas is a great example of how we continue to grow our portfolio of business solutions to serve the logistical needs of our customers,” Romaine Seguin, president of UPS’ Americas region, said at the time.
An area of considerable growth for UPS was its supply chain and freight operation. With an operating profit of $187 million, this division posted record numbers in the second quarter of 2011. UPS also delivered 957 million packages from April to June.
To UPS Chief Financial Officer Kurt Kuehn, these numbers speak volumes about his company’s staying power. “Despite softening economic conditions, UPS delivered its highest ever second-quarter earnings per share,” he said in a statement. “These results were driven by the quality of revenue in U.S. domestic, superior export volume growth in international and record supply chain and freight results.”
BB&T Capital Markets officials concurred. When assessing UPS’ second-quarter results, the financial analysts concluded that “long-term investments in supply chain and freight are paying off [for UPS].” Segment revenue, led by UPS Freight, rose to $2.3 billion during this period and tonnage increased by 6.2 percent, BB&T Capital Markets officials said.